TRANSPORTATION TEST 3- RUSSELL

What is Transportation Management?

Focuses on the efficient physical flows of product between facilitates across the supply chain.

How is the cost of the interstate highway system funded?

Unit Charge

What Incoterm puts nearly every element of responsibility on the buyer?

Ex Works (EXW)

What is the average salary for supply chain jobs with 1 year or less experience according to the ASCMstudy?

$60,000

What were the total net losses of the US Postal Service losses from 2007 through 2020? What are the main drivers of escalating losses?

$87 billion

Describe the different types of characteristics between established and advanced on the Transportation Management Maturity Spectrum.

-Established- Long term, better collaboration, process driven. -Advanced- Full collaboration, automation system enabled.

What is safety regulation and what does it do?

-Establishes minimum level of safety for public and the environment. -More important after economic deregulation to protect safety concerns from productivity pressures. -Covers operations, personnel qualifications, vehicles, equipment standards, service hours for operators, movement of hazardous materials, environmental safety, etc. -Adds direct costs to transportation providers to offset indirect social costs resulting from deaths, injuries, and pollution Originates from Congressional laws, federal agencies and departments, and state governments.

What are the goals and mechanisms of antitrust regulations?

-Intended to outlaw price fixing among competing firms. -Eliminate business practices that tended toward monopolization. -Prevent any firm or combination of firms from refusing to sell or deal with certain firms or avoiding geographic market allocations.

What are some of the benefits of how blockchain is expected to be used intransportation?

-More efficient documentation workflows. -More sustainable transport. -Increased in-transit transparency. -Better information sharing among trading partners. -Improved Freight Security.

What are the key benefits of a TMS and what are the typical savings of each?

-Planning and Optimization- 5-15% -Procurement/Contract Savings- 3-10% -Increased Usage of Preferred Carriers- 2-5% -More Efficient, Automated Operations- 1-5% -Freight Audit Savings- 1-4% -Collaboration- 1-4% -Better Analytics- 1-4% -Appointment Scheduling- 0.5-1%

Discuss how sustainability is impacting the transportation industry - what are the reasons companies are being forced to go green?

-Reduce carbon footprint. -Fuel price variations. -Corporate responsibility. -Brand reputation. -Social pressure. -Competitive pressures. -Stakeholder pressure. -Regulation

What are the 3 main components of Transportation Management and what is included in each?

-TACTICAL• Shipping Operations• Dock & Yard Mngt• Mode Selection• Shipment Planning• Load Consolidation• Carrier Scheduling• Shipment Monitoring• Issue Resolution. -FINANCIAL• Freight Invoice, Audit & Payment• Internal Allocation of Freight Costs• Freight Claims Processing• TMS Rate Load &Maintenance• Carrier Integration Monitoring. -STRATEGIC• Carrier Selection &Contracting• Carrier PerformanceAnalytics - CarrierScorecards• Spend Analysis -Freight CostReporting• Customer FreightCost Reporting• Proactively identifying cost and service.

What are examples of considerable ocean-related perils?

1) Cargo Movement 2) Water Damage 3) Overboard Losses 4) Jettison 5) Fire 6) Stranding 7) General Average 8) Other Risks

What are the keys to successful Transportation Management?

1) Create Global Ownership. 2) Provide consistent and relevant global KPIs. 3) Create global standards and processes. 4) Hold carriers accountable. 5) Fully leverage a TMS tool. 6) Provide enriched analytics and tools.

What are the top 2 management and technical skills needed in supply chain according to the AuburnLogistics 2030 study?

1) Decision Making 2) Critical Thinking

What are the three types of user charges? Explain and give examples of each.

1) Existence Charge- A charge made against the person or tangible item unit regardless of the extent of use made of the services (e.g., driver's license and auto registration fees). 2) Unit Charge- Fee assessed for use of a facility or resource, variable according to use, but does not distinguish between passengers or freight within each unit (e.g., tolls and fuel mileage taxes). 3) Relative Charge- Fees assessed according to the investment of cost incurred by the agency to provide the service (e.g., increased vehicle registration fees for heavier tractor-trailers).

What are the 4 steps in the risk management process?

1) Identify- Determine the potential transportation disruptions. 2) Analyze- Evaluate the likelihood and impact of each disruption. 3) Manage- Apply risk management and mitigation strategies 4) Review- Monitor and update the plan; identify new risks.

What are the 4 current challenges in transportation management we discussed in class?

1) Lowering Freight Costs 2) Fuel Prices 3) Re-identifying Partner Carriers 4) Attracting and Retaining Transportation Talent

According to Gartner, what are the top 2 TMS systems available?

1) Oracle 2) BlueYonder

What are some of the key activities of a Carrier Performance Management Analytics Team?

1) Procurement Savings (carrier rates) 2) Increased Usage of Preferred Carriers 3) Collaboration with Carriers 4) Better Analytics

What are the 6 primary categories of risk? Give examples of each.

1) Product Loss- Product not reaching the buyer. 2) Product Damage- Poor freight handling. 3) Product Contamination- Increased chance with long trips. 4) Delivery Delay- Congestion, Poor Weather, Equipt. Malfun. 5) Supply Chain Interruption- Poor execution of DTD Ops. 6) Security Breach- Lack of security processes.

What are the 4 techniques to manage and mitigate risks?

1) Risk Avoidance 2) Risk Reduction 3) Risk Transfer 4) Risk Retention

What are some the key findings to the ASCM study?

1) Salaries and compensation are up. 2) Gap narrowing in women and men (pay gap) 3) Paid time off and flexibility improving. 4) Professional development pays off. 5) People love their supply chain jobs.

What are the key planning support capabilities of a TMS?

1) Tactical and Operational Planning -Routing and Scheduling, Mode Selection, Carrier Selection, Load Consolidation. 2) Delivery Execution - Document Creation, Load Tendering, Appointment Scheduling, Modal Transfers. 3) Visibility and Performance Management - Freight Tracking, Event Management, Metric Analysis, Freight Bill Auditing.

What are the four uses of user charges?

1) To compensate the public for assistance during modal conception and encouragement. 2) To finance construction (e.g., federal fuel tax on gasoline, diesel, and barge fuel tax). 3) To cover operating costs (e.g., airport landing fees, road tolls, and state fuel tax applied to road maintenance). 4) To equalize intermodal competitive conditions (e.g., when right-of-way costs were borne by the public and not by transport carriers or modes).

According to the ASCM study, what percent of supply chain workers were very satisfied with their job?

20%

What is the projected future growth of freight activity in the U.S by 2050?

50%

What is the average state gasoline tax in the US?

57 cents/ per gallon.

According to Mckinsey, what % of revenue do the best companies spend on logistics?

6-10%

What portion of US Business Logistics Costs does transportation represent?

66%

Define transportation risk.

A future freight movement with a probability of occurrence and the potential for impacts on the supply chain.

Discuss how the talent shortage is impacting the transportation industry.

A supply chain talent gap exists because of low attractiveness of supply chain positions and low retention rates.

What are some examples of fuel savings modifications that can be made to trucks and trailers and what level of savings can they drive?

Aerodynamic Mirrors, Aerodynamic Bumper, Fuel Tank Skirts, etc. - One or more devices= 5% fuel savings. - Two or more= 9% fuel savings.

What are the benefits of public/government promotion for each mode (modal promotion)?

Air- Air Traffic control system/Subsidies to serve low-traffic cities/USPS mail subsidies/Terminal development and construction/Safety/R&D for commercial aircraft improvements/Home-flag airline regulations. Trucking- Highway development, design, improvement, construction, and safety/Motor carrier vehicle safety/Regional infrastructure improvements. Water- Army Corps of Engineers river and port channel dredging, lock and dam construction, operation and maintenance/USCG navigation aids and systems/Fuel tax user charge. Rail- Track repair/Motive power financing/Rail line abandonment subsidies/Conrail funding & promotion/R&D in rail technology and safety/Amtrak appropriations.

Draw and label a risk assessment matrix. Explain which cells are most and least important.

Chapter 10 slide 24.

Describe the recent trends in container losses in the ocean transport industry.

Containers lost overboard represent less than one thousandths of 1% (0.001%).

What Incoterm puts nearly every element of responsibility on the seller?

Delivered Duty Paid (DDP)

What are ELDs and how are they used in trucking?

Electronic Logging Devices- Force HOS rules/Reduce Fatigue/Lane Departure Warnings, etc.

Define business continuity planning.

Identify and develop procedures to ensure operational continuity.

What is the rationale for transportation regulation and government intervention?

Imperfections in the marketplace in a free-enterprise economy provide the rationale for government intervention to create and maintain conditions that allow economical use of resources by private enterprise.

Define transportation disruption.

Interruption in trade flow caused by nature and human-caused incidents.

Describe the recent trends in fatal large truck accidents.

Large truck crashes accounted for only 10% of all motor vehicle crash deaths in 2020.

What are the three ways governments are engaged in transportation?

Promotion, Policy, Regulation

What are some of the key challenges of further advances in autonomous driving commercial vehicles?

Proof of safety.

Which transportation mode is still under economic regulation, under which federal agency, and why?

Railroads The ICCTA Deregulation rolled back regulation to leave the STB regulating railroads because of its tendency towards monopoly.

What are the key steps in TMS Selection and Implementation?

Selection- Integrated TMS suites or individual applications/Purchase Options/ROI Implementation- Application Integration

What is truck platooning?

The front truck and trailer is driven by a person, and the truck behind it is electronically tethered to the truck in front. Ex- If the front truck slows, then the autonomous truck matches speed.

What is the key issue driving the need for the innovation of autonomous driving commercial vehicles?

The huge driver shortage.

What is Nationalization and what are the rare examples in US transportation?

The process of a government taking ownership, financing, and operation of a company or industry. -Examples: Alaskan Railroad and Amtrak.

What is security regulation and what does it do?

To protect the security of the transportation system from terrorist attacks, organized by the Department of Homeland Security (DHS).

Define transportation risk management.

identify, analyze, assess, control, avoid/minimize/eliminate risks to the supply chain.

What is the role of economic regulation?

transform monopolistic industries into competitive ones by: Determining if a firm can enter an industry. -Determining which market(s) a firm can serve in that industry. -Determining the prices that a firm can charge customers.